Supplemental Investor Information. February 11, 2015

Transcription

1 Supplemental Investor Information February 11, 2015

2 SAFE HARBOR This presentation contains forward-looking statements, including, among other things, statements regarding our growth prospects; our ability to attract and retain customers to use our platform; our ability to innovate and provide a superior customer experience; our ability to successfully expand in our existing markets and into new markets; and our ability to effectively manage our growth and future expenses. The words such as may, should, will, believe, expect, anticipate, target, project, and similar phrases that denote future expectation or intent regarding our financial results, operations and other matters are intended to identify forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to differ materially, including (i) adverse changes in general economic or market conditions; (ii) our ability to adapt our customer service platform to changing market dynamics and customer preferences or achieve increased market acceptance of our platform; (iii) our expectation that the future growth rate of our revenues will decline, and that as our costs increase, we may not be able to generate sufficient revenues to achieve or sustain profitability; (iv) our limited operating history, which makes it difficult to evaluate our prospects and future operating results; (v) our ability to effectively manage our growth and organizational change; (vi) our ability to compete effectively in the intensely competitive market in which we participate; (vii) the development of the market for software as a service business software applications; (viii) our ability to sell our live chat software as a standalone service and more fully integrate our live chat software with our customer service platform; (ix) breaches in our security measures or unauthorized access to our customers data; (x) service interruptions or performance problems associated with our technology and infrastructure; (xi) real or perceived errors, failures, or bugs in our products; (xii) our substantial reliance on our customers renewing their subscriptions and purchasing additional subscriptions from us; and (xiii) our ability to effectively expand our sales capabilities. The forward-looking statements contained in this presentation are also subject to additional risks, uncertainties, and factors, including those more fully described in our filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 6,. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that we make with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31,. Forward-looking statements represent our management s beliefs and assumptions only as of the date such statements are made. We undertake no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law. 2

3 Financial Highlights

4 REVENUE ANNUAL REVENUE ($ in millions) QUARTERLY REVENUE ($ in millions) 71% $39 $127 $34 $30 101% CAGR $72 $19 $23 $25 $38 $7 $9 $10 $12 $14 $16 $ Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

5 LARGE GLOBAL AND LOYAL CUSTOMER BASE as of Q4 OVER 52,000 PAID CUSTOMER ACCOUNTS WORLDWIDE REVENUE BY GEOGRAPHIC AREA Other 16% EMEA 29% US 55% KEY FACTS Annual Recurring Revenue Distribution from Accounts 100+ seats Less than 100 seats 24% 76% 120% Annualized dollar-based net expansion rate 5

6 CAPITAL EFFICIENT MODEL as of December 31, $40 QUARTERLY REVENUE & OPERATING CASH FLOW ($ in millions) $30 $20 $10 Revenue $0 Operating Cash Flow Q1 Q2 Q3 Q4 Q Q2 Q3 Q4 6

7 FINANCIAL METRICS: TOTAL NUMBER OF PAID CUSTOMER ACCOUNTS Total number of paid customer accounts excludes customer accounts on the low cost Starter Plan and includes paid customer accounts on the Zopim live chat software Paid Customer Accounts on Zendesk s Customer Service Platform (approx.) + Paid Customer Accounts using Zopim Live Chat Software (approx.) = Current Calculation of Paid Customer Accounts (approx.) Prior Calculation of Customer Accounts December 31, As of September 30, June 30, March 31, 27,600 25,900 24,000 22,100 24,900 22,500 20,100 17,800 52,500 48,400 44,100 39,900 51,721 48,763 45,740 42,685 7

8 FINANCIAL METRICS: ANNUALIZED DOLLAR-BASED NET EXPANSION RATE Annualized dollar-based net expansion rate now excludes customer accounts on the low cost Starter Plan Current Calculation of Dollar- Based Net Expansion Rate Prior Calculation of Dollar- Based Net Expansion Rate December 31, As of September 30, June 30, March 31, 120% 121% 120% 121% 122% 123% 122% 123% Annualized dollar-based net expansion rate does not currently incorporate Zopim live chat 8

9 Supplemental Information

10 BRINGING ORGANIZATIONS AND THEIR CUSTOMERS CLOSER TOGETHER 10

11 SUBSCRIPTION OPTIONS as of December 31, 11

12 CUSTOMERS INTERNET TELECOM ENTERPRISE MEDIA / ENTERTAINMENT RETAIL / CONSUMER TRAVEL EDUCATION / NON-PROFIT/ GOVERNMENT 12

13 DEVELOPMENT PLATFORM Over 270 public apps Broad developer ecosystem Channel for partners Product extensions Product experimentation Partner evaluation 13

14 GROWTH DRIVERS EXPLOIT DATA AND ANALYTICS OPPORTUNITY BROADEN PLATFORM AND PARTNERSHIPS INTRODUCE NEW PRODUCTS AND FEATURES EXTEND GLOBAL CUSTOMER FOOTPRINT EXPAND ENTERPRISE CUSTOMER BASE EXTEND SMB MARKET LEADERSHIP DRIVE ORGANIC GROWTH THROUGH BRAND DEVELOPMENT 14